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Japan’s Tokyo Gas Company will establish a joint venture with PetroVietnam Gas JSC and others as soon as this month to tap increasing demand for liquefied natural gas in Vietnam, Nikkei Asian Review reported on Saturday.

The Japanese firm will invest several hundred million yen (100 million yen = US$994,600) to secure a stake of around 10-20 percent in the joint venture, the news website said.

PetroVietnam Gas, a subsidiary of state-run Vietnam Oil and Gas Group, will hold a majority stake. Other partners are expected to include a local construction company, according to Nikkei.

The joint venture reportedly will launch feasibility studies to explore the possibility of building an LNG plant for storage and pipelines to create a supply network.

Vietnam used around 10 billion cubic meters of LNG in 2014, a 5-percent year-on-year increase. To satisfy growing demand for electricity, the country is looking to add gas-fired power plants to supplement its mainstay coal-fired and hydroelectric facilities.

LNG is also in demand as an energy source for industrial parks around Ho Chi Minh City, the country's economic hub.